Tuesday, October 11, 2016

The next BriefingsDirect Voice of the Customer digital
transformation case study explores how powerful and diverse financial information is newly and uniquely delivered to the ubiquitous Excel spreadsheet edge.

We'll explore how HTI Labs in London provides the means and governance with its Schematiq tool to bring critical data services to the interface users want. By
leveraging the best of instant cloud-delivered data with
spreadsheets, Schematiq democratizes end-user empowerment while
providing powerful new ways to harness and access complex information.

Harris: Obviously, in finance, spreadsheets
are widespread and are being used for a number of varying problems. A
real issue started a number of years ago, where spreadsheets got out of
control. People were using them everywhere, causing lots of operational
risk processes. They wanted to get their hands around it for governance, and there were loads that we needed to eradicate -- Excel-type issues.

That
led to the creation of centralized teams that locked down rigid
processes and effectively took away a lot of the innovation and
discovery process that traders are using to spot opportunities and
explore data.

Through this process, we're trying to
help with governance to understand the tools to explore, and [deliver] the ability
to put the data in the hands of people ... [with] the right balance.

So by taking the best of regulatory scrutiny around what a person needs,
and some innovation that we put into Schematiq, we see an opportunity to
take Excel to another level -- but not sacrifice the control that’s
needed.

Gardner: Jonathan, are
there technology trends that allowed you to be able to do this, whereas it may
not have been feasible economically or technically before?

Upstream capabilities

Glass:
There are lot of really great back-end technologies that are available
now, along with the ability to either internally or externally scale
compute resources. Essentially, the desktop remains quite similar. Excel
has remained quite the same, but the upstream capabilities have really
grown.

So there's a challenge. Data that people feel
they should have access to is getting bigger, more complex, and less
structured. So Excel, which is this great front-end to come to grips
with data, is becoming a bit of bottleneck in terms of actually keeping
up with the data that's out there that people want.

Gardner:
So, we're going to keep Excel. We're not going to throw the baby out
with the bathwater, so to speak, but we are going to do something a
little bit different and interesting. What is it that we're now putting
into Excel and how is that different from what was available in the
past?

Harris: Schematiq extends Excel and allows
it to access unstructured data. It also reduces the complexity and
technical limitations that Excel has as an out-of-the-box product.

We
have the notion of a data link that's effectively in a single cell that
allows you to reference data that’s held externally on a back-end site.
So, where people used to ingest data from another system directly into
Excel, and effectively divorce it from the source, we can leave that data
where it is.

It's a paradigm of take a question to
the data; don’t pull the data to the question. That means we can
leverage the power of the big-data
platforms and how they process an analytic database on the back-end,
but where you can effectively use Excel as the front screen. Ask questions
from Excel, but push that query to the back-end. That's very different
in terms of the model that most people are used to working with in Excel.

Gardner: This is a two-way street. It's a bit different. And you're
also looking at the quality, compliance, and regulatory concerns over
that data.

Harris: Absolutely. An end-user is
able to break down or decompose any workflow process with data and debug
it the same way they can in a spreadsheet. The transparency that we add
on top of Excel’s use with Schematiq allows us to monitor what
everybody is doing and the function they're using. So, you can give them
agility, but still maintain the governance and the control.

In
organizations, lots of teams have become disengaged. IT has tried to
create some central core platform that’s quite restrictive, and it's not
really serving the users. They have gotten disengaged and they've
created what Gartner referred to as the Shadow BI Team, with databases under their desk, and stuff like that.

By
bringing in Schematiq we add that transparency back, and we allow IT
and
the users to have an informed discussion -- a very analytic
conversation -- around what they're using, how they are using it, where
the bottlenecks
are. And then, they can work out where the best value is. It's all
about agility
and control. You just can't give the self-service tools to an
organization and not have the transparency for any oversight or
governance.

To the edge

Gardner:
So we have, in a sense, brought this core to the edge. We've
managed it in terms of compliance and security. Now, we can start to
think about how creative we can get with what's on that back-end that we
deliver. Tell us a little bit about what you go after, what your users
want to experiment with, and then how you enable that.

Glass: We try to be as agnostic to that as we can, because it's the creativity of the end-user that really drives value.

We have a variety of different data sources, traditional relational databases, object stores, OLAP cubes, APIs, web queries, and flat files.
People want to bring that stuff together. They want some way that they
can pull this stuff in from different sources and create something
that's unique. This concept of putting together data that hasn't been
put together before is where the sparks start to fly and where the value
really comes from.

Gardner: And with Schematiq you're enabling that aggregation and cleansing ability to combine, as well as delivering it. Is that right?

The
iteration curve is so much tighter and the cost of doing that is so
much less. Users are able to innovate and put together the scenario of
the business case for why this is a good idea.

Harris:
Absolutely. It's that discovery process. It may be very early on in a
long chain. This thing may progress to be something more classic,
operational, and structured business intelligence (BI),
but allowing end-users the ability to cleanse, explore data, and then
hand over an artifact that someone in the core team can work with or use
as an asset. The iteration curve is so much tighter and the cost of
doing that is so much less. Users are able to innovate and put together
the scenario of the business case for why this is a good idea.

The only thing I would add to the sources that Jon has just mentioned is with HPE Haven OnDemand, [you gain access to] the unstructured analytics, giving the users the ability to access and leverage all of the HPE IDOL capabilities. That capability is a really powerful and transformational thing for businesses.

They
have such a set of unstructured data [services] available in voice and text, and
when you allow business users access to that data, the things they come
up with, their ideas, are just quite amazing.

Technologists
always try to put themselves in the minds of the users, and we've all
historically done a bad job of making the data more accessible for them.
When you allow them the ability to analyze PDFs without structure, to
share that, to analyze sentiment, to include concepts and entities, or even
enrich a core proposition, you're really starting to create innovation.
You've raised the awareness of all of these analytics that exist in the
world today in the back-end, shown end-users what they can do, and then
put their brains to work discovering and inventing.

Gardner:
Many of these financial organizations are well-established, many of
them for hundreds of years perhaps. All are thinking about digital
transformation, the journey, and are looking to become more data-driven
and to empower more people to take advantage of that. So, it seems to me
you're almost an agent of digital transformation, even in a very
technical and sophisticated sector like finance.

Making data accessible

Glass:
There are a lot of stereotypes in terms of who the business analysts
are and who the people are that come up with ideas and intervention. The
true power of democratization is making data more accessible, lowering
the technical barrier, and allowing people to explore and innovate.
Things always come from where you least expect them.

Gardner:
I imagine that Microsoft is pleased with this, because there are some
people who are a bit down on Excel. They think that it's manual, that
it's by rote, and that it's not the way to go. So, you, in a sense, are
helping Excel get a new lease on life.

Glass: I
don’t think we're the whole story in that space, but I love Excel. I've
used it for years and years at work. I've seen the power of what it can
do and what it can deliver, and I have a bit of an understanding of why
that is. It’s the live nature of it, the fact that people can look at
data in a spreadsheet, see where it’s come from, see where it’s going,
they can trust it, and they can believe in it.

That’s
why what we're trying to do is create these live connections to these
upstream data sources. There are manual steps, download, copy/paste,
move around the sheet, which is where errors creep in. It’s where the
bloat, the slowness, and the unreliability can happen, but by changing
that into a live connection to the data source, it becomes instant and
it goes back to being trusted, reliable, and actionable.

Harris:
There's something in the DNA, as well, of how people interact with data
and so we can lay out effectively the algorithm or the process of
understanding a calculation or a data flow. That’s why you see a lot of
other systems that are more web-based or web-centric and replicate an
Excel-type experience.

The user starts to use it and
starts to think, "Wow, it’s just like Excel," and it isn’t. They hit a
barrier, they hit a wall, and then they hit the "export" button. Then,
they put it back [into Excel] and create their own way to work with it.
So, there's something in the DNA of Excel and the way people lay things
out. I think of [Excel] almost like a programing environment for
non-programers. Some people describe it as a functional language very
much like Haskell, and the Excel functions they write were effectively then working and navigating through the data.

Gardner: No need to worry that if you build it, will they come; they're already there.

Harris: Absolutely.

Gardner:
Tell us a bit about HTI Labs and how your company came about,
and where you are on your evolution.

Cutting edge

Harris:
HTI labs was founded in 2012. The core backbone of the team actually
worked for the same tier 1 investment bank, and we were building risk
and trading systems for front-office teams. We were really, I suppose,
the cutting edge of all the big data technologies that were being used
at the time -- real-time, disputed graphs and cubes, and everything.

As a core team, it was about taking that expertise and bringing it to other industries. Using Monte Carlo
farms in risk calculations, the ability to export data at speed and
real-time risk. These things were becoming more centric to other
organizations, which was an opportunity.

At the moment,
we're focusing predominately on energy trading. Our software is being
used across a number of other sectors and our largest client has
installed Schematiq on 120 desktops, which is great. That’s a great
validation of what we're doing. We're also a member of the London Stock
Exchange Elite Program, based in London for high-growth companies.

Glass: Darren and I met when we were working for the same company. I started out as a quant
doing the modeling, the map behind pricing, but I found that my
interest lay more in the engineering. Rather than doing it once, can I
do it a million times, can I do these things reliably and scale them?

The
algorithms are built, but the key to making them so much more improved
is the feedback loop between your domain users, your business users,
and how they can enrich and train effectively these algorithms.

Because I started in a front-office environment, it was very spreadsheet-dominated, it was very VBA-dominated.
There's good and bad in that. A lot of those lessened, and Darren and I
met up. We crossed the divide together from the top-down, big IT
systems and the bottom-up end-user best-developed spreadsheets, and so
on. We found a middle ground together, which we feel is a quite powerful
combination.

Gardner: Back to where this leads. We're seeing more-and-more companies using data services like Haven OnDemand and starting to employ machine learning, artificial intelligence (AI), and bots
to augment what the humans do so well. Is there an opportunity for that
to play here, or maybe it already is? The question basically is, how
does AI come to bear on what you can deliver out to the Excel edge?

Harris:
I think what you see is that out of the box, you have a base unit of
capability. The algorithms are built, but the key to making them so much
more improved is the feedback loop between your domain users, your
business users, and how they can enrich and train effectively these
algorithms.

So, we see a future where the self-service
BI tools that they use to interact with data and explore would almost
become the same mechanism where people will see the results from the
algorithms and give feedback to send back to the underlying algorithm.

Gardner: And Jonathan, where do you see the use of bots, particularly perhaps with an API model like Haven OnDemand?

The role of bots

Glass:
The concept for bots is replicating an insight or a process that
somebody might already be doing manually. When people create these data
flows and analyses that they maybe run once so it’s quite time-consuming
to run. The real exciting possibility is that you make these
things run 24×7. So, you start receiving notifications, rather than
having to pull from the data source. You start receiving notifications
from your own mailbox that you have created. You look at those and you
decide whether that's a good insight or a bad insight, and you can then
start to train it and refine it.

The training and
refining is that loop that potentially goes back to IT, gets back
through a development loop, and it’s about closing that loop and
tightening that loop. That's the thing that really adds value to those
opportunities.

Gardner: Perhaps we should unpack
Schematiq a bit to understand how one might go back and do that within
the context of your tool. Are there several components of the tool, one
of which might lend itself to going back and automating?

Glass: Absolutely. You can imagine the
spreadsheet has some inputs and some outputs. One of the components
within the Schematiq architecture is the ability to take a spreadsheet,
to take the logic and the process that’s embedded in our spreadsheet,
and turn it into an executable module of code, which you can host on
your server, you can schedule, you can run as often as you like, and you
can trigger based on events.

It’s
very much all about empowering the end-user to connect, create,
govern, share instantly and then allow consumption from anybody on any
device.

It’s a way of emitting code from a
spreadsheet. You take some of the insight, you take without a business
analysis loop and a development loop, and you take the exact thing that
the user, the analyst, has programmed. You make it into something that
you can run, commoditize, and scale. That’s quite an important way in
which we reduce that development loop. We create that cycle that’s tight
and rapid.

Gardner: Darren, would you like to explain the other components that make-up Schematiq?

Harris:
There are four components of Schematiq architecture. There's the
workbench that extends Excel and allows the ability to have large
structured data analytics. We have the asset manager, which is really
all about governance. So, you can think of it like source control for
Excel, but with a lot more around metadata control, transparency, and
analytics on what people are using and how they are using it.

There's
a server component that allows you just to off-load and scale analytics
horizontally, if they do that, and build repeatable or overnight
processes. The last part is the portal. This is really about allowing
end-users to instantly share their insights with other people. Picking
up from Jon’s point about the compound executable, but it’s defined in
Schematiq. That can be off-loaded to a server and exposed as another API
to a computer, the mobile, or even a function.

So,
it’s very much all about empowering the end-user to connect, create,
govern, share instantly and then allow consumption from anybody on any
device.

Market for data services

Gardner:
I imagine, given the sensitive nature of the financial markets and
activities, that you have some boundaries that you can’t cross when it
comes to examining what’s going on in between the core and the edge.

Tell
me about how you,
as an organization, can look at what’s going on with the Schematiq and
the democratization, and whether that creates another market for data
services when you see what the demand entails.

Harris:
It’s definitely the case that people have internal datasets they create
and that they look after. People are very precious about them because
they are hugely valuable, and one of the things that we strive to help
people do is to share those things.

Across the trading
floor, you might effectively have a dozen or more different IT
infrastructures, if you think of what’s existing on the desk as being a
miniature infrastructure that’s been created. So, it's about making easy
for people to share these things, to create master datasets that they
gain value from, and to see that they gain mutual value from that,
rather than feeling closed in, and don’t want to share this with their
neighbors.

If we work together and if we have the tools
that enable us to collaborate effectively, then we can all get more
done and we can all add more value.

If
we work together and if we have the tools that enable us to
collaborate effectively, then we can all get more done and we can all
add more value.

Gardner: It's interesting
to me that the more we look at the use of data, the more it opens up new
markets and innovation capabilities that we hadn’t even considered
before. And, as an analyst, I expect to see more of a marketplace of
data services. You strike me as an accelerant to that.

Harris:
Absolutely. As the analytics are coming online and exposed by API’s,
the underlying store that’s used is becoming a bit irrelevant. If you
look at what the analytics can do for you, that’s how you consume the
insight and you can connect to other sources. You can connect from
Twitter, you connect from Facebook, you can connect PDFs, whether it’s NoSQL,
structured, columnar, rows, it doesn’t really matter. You don’t see that
complexity. The fact that you can just create an API key, access it as
consumer, and can start to work with it is really powerful.

There was the recent example in the UK of a report on the Iraq War.
It’s 2.2 million words, it took seven years to write, and it’s
available online, but there's no way any normal person could consume or
analyze that. That’s three times the complete works of Shakespeare.

Using
these APIs, you can start to pull out mentions, you can pull out
countries, locations and really start to get into the data and provide
anybody with Excel at home, in our case, or any other tool, the ability
to analyze and get in there and share those insights. We're very used to
media where we get just the headline, and that spin comes into play.
People turn things on their, head and you really never get to delve into
the underlying detail.

What’s really interesting is
when democratization and sharing of insights and collaboration comes, we
can all be informed. We can all really dig deep, and all these people
that work there, the great analysts, could start to collaborate and
delve and find things and find new discoveries and share that insight.

Gardner:
All right, a little light bulb just went off in my head whereas we
would go to a headline and a new story and we might have a hyperlink to a
source. I could get a headline and a news story, open up my Excel
spreadsheet, get to the actual data source behind the entire story and
then probe and plumb and analyze that any which way I wanted to.

Harris:
Yes, Exactly. I think the most savvy consumer now, the analyst, is
starting to demand that transparency. We've seen in the UK, words,
election messages and quotes and even financial stats where people just
don’t believe the headlines. They're demanding transparency in that
process, and so governance can only be really a good thing.